- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 12. Parametric vs. NonParametric Tests
CFA Practice Question
Which of the following would be considered a nonparametric test?
II. A test to determine if the variances of two populations are equal.
III. A test to determine if the means of two populations are equal.
IV. A test dealing with a data set that's made up of rankings, as opposed to nominal values.
I. A test to determine if two events are truly independent of each other.
II. A test to determine if the variances of two populations are equal.
III. A test to determine if the means of two populations are equal.
IV. A test dealing with a data set that's made up of rankings, as opposed to nominal values.
A. I and IV
B. II and III
C. I and III
Explanation: Any test that deals with the mean or the variance of the population is regarded to be a "parametric" test. Consequently, all other tests would be regarded as "nonparametric" tests.
User Contributed Comments 1
User | Comment |
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edrei7 | Parametric tests are concerned with parameters and deals with assumptions. |